General liability insurance is crucial for protecting your business from common accidents. Unfortunately, a single general liability insurance policy won’t cover every danger that could face your business. It is important to know what is and is not covered under your general liability insurance policy so that you can fill in the gaps left behind.
Understanding Standard General Liability Coverage
General liability coverage protects damage to others who do business with you. If your business harms a third party, they might expect compensation for their losses. You can use this coverage to repay them. Think about it as the duty you might owe someone else who does not work for you.
Most policies include:
Bodily injury coverage: Helps injured parties pay their medical bills. It might also provide supplementary income. If someone slips and falls on your property, this coverage can often help.
Property damage protection: Pays for damage to someone else’s belongings.
These are important elements of protection. However, they are not the only types of liability insurance most businesses need. You might have to look elsewhere for more specialized coverage.
Protecting Against General Liability Exclusions
There are many policies offered to protect your business when your general liability insurance policy will not, including:
Commercial auto liability insurance: You must insure business vehicles. They need their own liability protection tailored. This comes in a specific commercial auto policy. In most cases, you’ll have to follow state law to get the right liability limits.
Workers’ compensation: Think of workers’ comp as liability protection against employee harm. Employees are not third parties. However, they still face liability risks in the business. Employees who get hurt on the job often have a right to supplementary income. Workers’ comp lets you repay them.
Errors & omissions (E&O) protection: Professional service providers might make mistakes that lead to financial losses for clients. You can use this coverage to repay clients for losses.
Directors & officers coverage: In the event that boards or high level executives make mistakes, this coverage extends to their actions.
In some cases, you can add certain elements of coverage to your CGL policy. However, in others, the CGL will specifically exclude certain liabilities. Therefore, ask your insurance agent specifically what your policy does not cover. After they explain this, they can likely guide you in shoring up any loose ends that need protection. There are many types of hyper-specific liability coverage out there. Contact your insurance agent about finding the best commercial insurance policy to protect your business.